Here's how you can snag thousands from the government to remodel your home: 'An $8,000 bank account for every American household'

If outdated home appliances have turned into a black hole for your bottom line, the Inflation Reduction Act can help you upgrade your dwelling and begin saving on energy bills. 

The scoop

The IRA, one of the most significant pieces of climate legislation in the history of the United States, is also good for people's bank accounts. That's because Americans qualify for thousands of dollars to upgrade their homes with technologies that lower their utility bills. 

"In essence, the IRA creates an $8,000 bank account for every American household … if people figure out how to access it and use it," environmental journalist Bill McKibben explained in a news briefing. 

This money is available through the Home Energy Rebates program. In order to obtain it, you just have to improve the energy efficiency of your home. That includes projects such as installing weatherization insulation, smart home technology, and appliances including induction stoves (which are safer for children).   

Project eligibility may vary by state, according to the Department of Energy. However, free tools such as those from the nonprofit Rewiring America can help you easily navigate your options, maximizing your savings by determining which upfront discounts you qualify for and the best tax incentives for your situation. 

How it's helping

First, it's hard to ignore the savings that come with upgrading your home. For example, having proper insulation can lower energy costs by as much as $300 annually. If you pair that insulation with other energy-efficient appliances, the savings grow significantly. Swapping your old heating, ventilation, and air conditioning system for a heat pump (which heats and cools) can knock another $1,000 off your utility bills. 

Second, it's hard to ignore the environmental and health benefits of electrifying your home. Most of the grid in the U.S. still runs on dirty fuels, which release heat-trapping gases and toxic fumes when burned. However, switching to more efficient electric systems reduces the amount of planet-warming pollution generated by residential operations. 

What everyone's saying

People are singing the praises of energy-efficient upgrades, speaking to the savings and comfort they provide. 

"Our insulation project cut our household gas use by 15%!" one person shared with The Cool Down. "We're saving a lot of money, especially in the winter!"

"We had a massive heat wave a few years ago and needed to install A/C but opted for a heat pump so we could get more efficient heating and cooling," another person told The Cool Down. "I love that it's fast to cool or heat, super quiet and very efficient."

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